43000+ Important MCQs for SSC CGL

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Learn SSC CGL MCQs with answers [Page 10 of Department 179]

R

Ram Sharma • 193.88K Points
Coach Economic

91) If there is an increase in the trade deficit, there must be

  • (A) An increase in the current account.
  • (B) An increase in the capital account.
  • (C) a decrease in the capital account.
  • (D) An increase in net transfers in the current account.
Correct Answer - Option (B)

No Explanation found. Add Explanation and get +2 points.

R

Ram Sharma • 193.88K Points
Coach Economic

92) To financelarge U.S. federal Budget deficits, the Federal Reserve increases the money supply. This leads to a surplus of dollars world wide. What happens to the U.S. dollar and trade?

  • (A) The dollar appreciates in value, stimulating imports but curtailing exports.
  • (B) The dollar appreciates in value, stimulating exports but curtailing imports.
  • (C) The dollar depreciates in value, stimulating imports but curtailing exports.
  • (D) The dollar depreciates in value, stimulating exports but curtailing imports.
Correct Answer - Option (D)

No Explanation found. Add Explanation and get +2 points.

R

Ram Sharma • 193.88K Points
Coach Economic

93) The Federal Reserve raises interestrates. What happens in the foreign Exchange market?

  • (A) Capital flows into the United States from other countries.
  • (B) Capital flows out of the United States in to other countries.
  • (C) The U.S. dollar depreciates.
  • (D) Thereis no change in the foreign Exchange market
Correct Answer - Option (A)

No Explanation found. Add Explanation and get +2 points.

R

Ram Sharma • 193.88K Points
Coach Economic

94) If the dollar depreciates, this likely will cause

  • (A) U.S. aggregate supply to rise in the short run and rise in the longrun.
  • (B) U.S. aggregate supply to rise in the short run but fall in the longrun.
  • (C) U.S. aggregate supply to fall in the short run and fall in the longrun.
  • (D) U.S. aggregate supply to fall in the short run but rise in the longrun
Correct Answer - Option (B)

No Explanation found. Add Explanation and get +2 points.

R

Ram Sharma • 193.88K Points
Coach Economic

95) Ifthe U.S. dollar depreciates against the British pound, what is likely to happen?

  • (A) British people will buy more American goods.
  • (B) Americans will buy more British goods.
  • (C) Americans will take more vacations in Britain.
  • (D) British people will stop vacationing in Florida
Correct Answer - Option (A)

No Explanation found. Add Explanation and get +2 points.

R

Ram Sharma • 193.88K Points
Coach Economic

96) Exchange rates are flexible and fiscal policy is held constant. An expansionary monetary policy will be

  • (A) Reinforce dbyan open economy.
  • (B) Mitigated byan open economy.
  • (C) Unaffected byan open economy.
  • (D) Multiplied byan outflow of gold.
Correct Answer - Option (A)

No Explanation found. Add Explanation and get +2 points.

R

Ram Sharma • 193.88K Points
Coach Economic

97) Exchange rates are flexible and fiscal policy is held constant. A Contractionary monetary policywill be

  • (A) Reinforced byan open economy.
  • (B) Mitigated byan open economy.
  • (C) Unaffected byan open economy.
  • (D) Multiplied bya noutflow of gold.
Correct Answer - Option (A)

No Explanation found. Add Explanation and get +2 points.

R

Ram Sharma • 193.88K Points
Coach Economic

98) In a floating exchange rate system:

  • (A) The government intervenes to influence the exchange rate
  • (B) The exchange rate should adjust to equate the supply and demand of the currency
  • (C) The Balance of Payments should always be in surplus
  • (D) The Balance of payments will always equal the government budget
Correct Answer - Option (B)

No Explanation found. Add Explanation and get +2 points.

R

Ram Sharma • 193.88K Points
Coach Economic

99) To prevent the external value of its currency rising the government could:

  • (A) Sell its own currency
  • (B) Increase interest rates
  • (C) Buy its own currency
  • (D) Sell foreign currency
Correct Answer - Option (A)

No Explanation found. Add Explanation and get +2 points.

R

Ram Sharma • 193.88K Points
Coach Economic

100) A fall in the external value of a currency:

  • (A) May cause an outward shift in the demand for the currency
  • (B) May cause an inward shift in the supply for the currency
  • (C) May lead to a movement along the demand curve for a currency
  • (D) May be due to an increase in demand for the country's export
Correct Answer - Option (C)

No Explanation found. Add Explanation and get +2 points.

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